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LV

Latvia

Northern Europe EU Schengen EUR

LV · LVA · #122 · 7 cities

Nomad score 60/100 Compare
Top income tax 33.0% effective 36.0%
Corporate tax 20.0% distributions only
PVN 21.0% standard rate
Tax residency 183 days 64 tax treaties

Latvia tax profile

Data year: 2026

Tax system
Worldwide CIT only on distributions and deemed distributions (0% on retained profits). Distributed profits are taxed at 20% CIT on a grossed-up base (divide by 0.8), equivalent to 25% of the net dividend. From 2026, companies whose shareholders are exclusively individuals may elect an alternative regime: 15% CIT (15/85) on distributions plus 6% PIT withheld on dividends paid to individuals.
Top PIT rate
33.0% (eff. 36.0%)
Corporate tax rate
20.0% (distributions only)
PVN
21.0%
Capital gains tax
25.5% 25.5% on disposals of capital assets (securities, real estate, business assets and similar). A 20% rate applies through 2027 for certain capital-gain transactions initiated before 2025 but not completed by 31 December 2024 where a gain declaration was filed.
Social security (employee)
10.5%
Social security (employer)
23.6%
Social security cap (annual)
EUR 105,300
Dividend withholding
0.0%
Interest withholding
0.0%
Royalty withholding
0.0%
Treaty count
64
Tax authority: Valsts ieņēmumu dienests Website

Income tax brackets

Personal income
Personal income brackets
Bracket min Bracket max Rate
EUR 0 EUR 105,300 25.5%
EUR 105,300 and above 33.0%
Local currency: EUR

Tax flags

Participation Exemption

Tax residency

Days threshold
183 days
Residency rules
Resident if declared domicile in Latvia, present 183+ days in any 12-month period, or a Latvian citizen employed abroad by the Latvian government. Residents are taxed on worldwide income; non-residents on Latvia-source income.
Exit tax
Yes Corporate exit tax under ATAD (CIT Act): charge when a Latvian company moves assets or tax residence abroad, including transfers between head office and foreign permanent establishments or on cross-border reorganisations.
CFC rules
Yes CFC rules under ATAD implementation.

Filing information

Fiscal year
01-01 – 12-31
Filing deadline
June 1
Extension deadline
July 1
Annual income return via SRS EDS, generally 1 March–1 June for the prior year; if progressive taxable income exceeds EUR 105,300, the window is 1 April–1 July (due 1 July). Tax payment deadlines follow VID rules (typically 23 June or 23 July, with instalments when tax due exceeds EUR 640).

Sources

Change history

    • Capital gains tax rate 20 25.5
    • Brackets updated

    Refreshed 2026 rates — `data_year`, `verified`, `top_pit_rate_effective` 36%, `capital_gains_tax_rate` 25.5%, `social_security_cap_annual` 105300, WHT 0%, `treaty_count` 64, `has_exit_tax` true, brackets and sources updated (https://www.vid.gov.lv/en/personal-income-tax-rates, https://taxsummaries.pwc.com/latvia).

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